What is bankruptcy?
Bankruptcy is a formal debt solution. It’s one way you can clear your debts in 12 months and you can apply online. However, it can have long-lasting effects on you and you should consider these before applying.
It’s best suited for people who can’t afford to pay their debts off within a reasonable timeframe. That means if you owe a lot more than your existing income and any assets you own, it might be right for you.
The main ways you can go bankrupt is if a creditor petitions for your bankruptcy or if you apply for bankruptcy yourself. If you’re on an IVA and you don’t keep to the terms of this, it’s also possible that your IVA supervisor could apply to make you bankrupt.
Finding out more about bankruptcy
As bankruptcy is a formal insolvency, there’s a lot to get your head around. Read our ‘How does bankruptcy work?’ page for an easy-to-understand explanation of the bankruptcy process and how you go about applying for it. We’ll also look at whether you’ll have to pay anything while you’re bankrupt or after your bankruptcy is over.
Bankruptcy isn’t for everyone – it’s only for clearing certain debts. And if a creditor applies for bankruptcy against you, there’s a minimum amount you have to owe. We’ll take you through all of the qualifying criteria on our ‘How do I qualify for bankruptcy?’ page.
As we mentioned, there is a lot to consider when it comes to bankruptcy. Although it can be the right solution for some people and help them clear their debts, it can have negative effects too. We’ll tell you more about the consequences of bankruptcy on our ‘Is bankruptcy right for me?’ page.
After you’ve read all of this, you should be closer to making an informed decision about whether or not bankruptcy could help with your debts. Don’t worry if you’ve still got doubts or questions though. You can give us a call to speak to one of our debt advisors or request a call back for more information.
We don’t offer a bankruptcy service but if we think it is the most suitable solution for you, we’ll signpost you towards the relevant services for this. You can read more about it on the Gov.uk website.
Continue to the next section How does bankruptcy work?
